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BP p.l.c. (GB:BP)
LSE:BP
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BP p.l.c.
(LSE:BP)
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Rating:63Neutral
Price Target:
483.00p
▲(5.33% Upside)
BP's overall stock score is driven by strong earnings call performance and positive technical indicators. However, financial performance challenges and high valuation metrics weigh down the score. The company's resilience and strategic progress are notable strengths, but liquidity and profitability issues require attention.
Positive Factors
Operational Efficiency
BP's strong operational performance and strategic progress, including exploration successes, indicate robust efficiency and potential for sustained growth.
Exploration Success
Significant exploration discoveries enhance BP's resource base, supporting long-term production growth and competitive positioning in the energy sector.
New Projects
Timely completion of new projects strengthens BP's production capabilities and market presence, ensuring future revenue streams and operational stability.
Negative Factors
High Debt Levels
High leverage poses financial risks, potentially limiting BP's flexibility to invest in growth opportunities or weather economic downturns.
Declining Revenue Growth
A sharp decline in revenue growth indicates market challenges and pressures on BP's ability to maintain profitability and shareholder returns.
Liquidity Challenges
Decreasing free cash flow growth suggests potential liquidity issues, which could impact BP's capacity to fund operations and strategic initiatives.
BP p.l.c. (BP) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£69.57B
Dividend Yield5.37%
Average Volume (3M)26.71M
Price to Earnings (P/E)63.1
Beta (1Y)1.02
Revenue Growth-6.90%
EPS Growth-43.82%
CountryUK
Employees100,500
SectorEnergy
Sector Strength52
IndustryOil & Gas Integrated
Share Statistics
EPS (TTM)0.11
Shares Outstanding15,682,013,000
10 Day Avg. Volume25,231,935
30 Day Avg. Volume26,714,907
Financial Highlights & Ratios
PEG Ratio-2.16
Price to Book (P/B)1.36
Price to Sales (P/S)0.43
P/FCF Ratio6.71
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£459.99Price Target Upside0.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
BP p.l.c. Business Overview & Revenue Model
Company DescriptionBP p.l.c. engages in the energy business worldwide. It operates through Gas & Low Carbon Energy, Oil Production & Operations, Customers & Products, and Rosneft segments. It produces and trades in natural gas; offers biofuels; operates onshore and offshore wind power, and solar power generating facilities; and provides de-carbonization solutions and services, such as hydrogen and carbon capture and storage. The company is also involved in the convenience and mobility business, which manages the sale of fuels to retail customers, convenience products, aviation fuels, and Castrol lubricants; and refining and trading of oil products, as well as operation of electric vehicle charging facilities. In addition, it produces and refines oil and gas; and invests in upstream, downstream, and alternative energy companies, as well as in advanced mobility, bio and low carbon products, carbon management, digital transformation, and power and storage areas. The company was founded in 1908 and is headquartered in London, the United Kingdom.
How the Company Makes MoneyBP generates revenue primarily through the exploration and production of oil and natural gas, which constitutes a significant portion of its earnings. The company sells crude oil and natural gas to wholesalers and large consumers, while its refining operations convert crude oil into valuable petroleum products, generating additional income. Retail operations, including BP-branded gas stations, contribute to revenue through the sale of fuel and convenience store products. Additionally, BP has been expanding its investments in renewable energy, which, while currently a smaller revenue stream, is expected to grow as the demand for sustainable energy solutions increases. Strategic partnerships and joint ventures with other energy companies further enhance BP's capabilities and market reach, enabling it to optimize resource extraction and share operational costs.
BP p.l.c. Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 10, 2026
Earnings Call Sentiment Positive
The earnings call reflected a strong operational and strategic performance with significant exploration successes and improvements in both upstream and downstream operations. However, there are challenges related to ongoing legal disputes and managing CapEx amid macroeconomic uncertainties. Despite these challenges, the positive aspects significantly outweigh the negative ones.Q3-2025 Updates
Positive Updates
Strong Operational Performance
BP delivered another strong quarter with underlying pretax earnings of $5.3 billion and underlying net income of $2.2 billion. Operating cash flow for the quarter was $7.8 billion.
Upstream Production Increase
Upstream production increased by around 3% quarter-on-quarter with a plant reliability rate of around 97%, which led to upgraded full-year production guidance.
Record Refining Availability
Refining availability was close to 97%, marking the best quarter in 20 years for the current portfolio.
New Oil and Gas Projects
Six new major oil and gas projects started in 2025, with four of them ahead of schedule.
Exploration Success
12 exploration discoveries in 2025, including the significant Bumerangue discovery in Brazil.
Improved Downstream Earnings
Underlying earnings in the first nine months were around 40% higher than the same period in 2024.
Progress in AI and Automation
BP made significant progress in AI, improving operational efficiency and reducing costs across upstream and downstream operations.
Strong Interest in Divestments
BP is making good progress on divestment proceeds with strong interest in assets like Castrol and Gelsenkirchen.
Negative Updates
Venture Global Arbitration
BP is involved in an arbitration case with Venture Global, but the details of the damages sought are not disclosed.
Potential CapEx Challenges
BP faces potential challenges in managing CapEx within the $13-15 billion range amid potential macroeconomic uncertainties.
Trading Weakness
BP's trading segment experienced a weaker quarter, although year-to-date performance is in line with last year.
Company Guidance
During BP's Third Quarter 2025 Results Call, the company reported strong operational performance and strategic progress, showcasing underlying pretax earnings of $5.3 billion and underlying net income of $2.2 billion. BP generated $7.8 billion in operating cash flow, aligning with its growth target for adjusted free cash flow growth of 20% CAGR from 2025 to 2027. Upstream production increased by approximately 3% quarter-on-quarter, with upstream plant reliability at around 97%. This led to upgraded full-year production guidance, marking the best quarter in 20 years for the current portfolio. BP has started up six new oil and gas major projects in 2025, four of which were ahead of schedule, and reported 12 exploration discoveries within the year. The company is also focused on achieving a $20 billion divestment proceeds target, with $5 billion expected from proceeds completed and announced this year. BP aims to maintain organic CapEx below $14 billion, and despite market volatility, remains committed to enhancing performance, reducing costs, and strengthening the balance sheet to increase shareholder value and returns.BP p.l.c. Financial Statement Overview
Summary
BP's financial statements reflect a challenging market environment with declining revenue growth and profitability issues. The balance sheet shows a leveraged position with potential risks, and cash flow analysis indicates liquidity challenges. Despite these challenges, BP maintains operational efficiency.Income Statement
BP's income statement shows a mixed performance. The TTM data reveals a significant decline in revenue growth rate at -44.1%, indicating a challenging market environment. Gross profit margin stands at 15.43%, which is relatively stable, but the net profit margin is negative at -0.64%, reflecting profitability issues. EBIT and EBITDA margins are moderate at 5.45% and 14.42%, respectively, suggesting operational efficiency but also highlighting the impact of external pressures on profitability.55
Neutral
Balance Sheet
The balance sheet indicates a high debt-to-equity ratio of 1.22, which suggests a leveraged position that could pose risks if market conditions worsen. Return on equity is negative at -2.02%, reflecting challenges in generating returns for shareholders. However, the equity ratio is a moderate 20.81%, indicating a balanced asset structure. Overall, the balance sheet reflects a stable yet cautious financial position.60
Neutral
Cash Flow
Cash flow analysis shows a decline in free cash flow growth at -15.72%, indicating potential liquidity challenges. The operating cash flow to net income ratio is 0.39, suggesting adequate cash generation relative to net income. However, the free cash flow to net income ratio of 0.41 highlights the need for improved cash management. Overall, the cash flow statement reflects a need for strategic adjustments to enhance liquidity.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 185.45B | 185.23B | 213.67B | 240.86B | 154.71B | 112.38B |
| Gross Profit | 29.99B | 28.11B | 47.39B | 54.05B | 21.65B | -534.61M |
| EBITDA | 28.62B | 25.11B | 42.89B | 29.37B | 27.82B | -7.46B |
| Net Income | 609.55M | 382.83M | 15.50B | -2.48B | 7.42B | -21.54B |
Balance Sheet | ||||||
| Total Assets | 284.74B | 282.23B | 280.29B | 288.12B | 287.27B | 267.65B |
| Cash, Cash Equivalents and Short-Term Investments | 35.31B | 34.52B | 28.59B | 29.77B | 30.96B | 29.53B |
| Total Debt | 74.98B | 71.55B | 63.08B | 55.49B | 69.79B | 81.93B |
| Total Liabilities | 204.96B | 203.91B | 194.80B | 205.13B | 196.83B | 182.09B |
| Stockholders Equity | 59.24B | 59.25B | 70.28B | 67.55B | 75.46B | 71.25B |
Cash Flow | ||||||
| Free Cash Flow | 8.59B | 12.00B | 17.75B | 28.86B | 12.72B | -144.00M |
| Operating Cash Flow | 23.29B | 27.30B | 32.04B | 40.93B | 23.61B | 12.16B |
| Investing Cash Flow | -12.18B | -13.25B | -14.87B | -13.71B | -5.69B | -7.86B |
| Financing Cash Flow | -10.93B | -7.30B | -13.36B | -28.02B | -18.08B | 3.96B |
BP p.l.c. Technical Analysis
Positive
458.55
Price Trends
429.98
Positive
414.82
Positive
396.85
Positive
Market Momentum
10.72
Negative
62.54
Neutral
44.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BP, the sentiment is Positive. The current price of 458.55 is above the 20-day moving average (MA) of 446.42, above the 50-day MA of 429.98, and above the 200-day MA of 396.85, indicating a bullish trend. The MACD of 10.72 indicates Negative momentum. The RSI at 62.54 is Neutral, neither overbought nor oversold. The STOCH value of 44.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:BP.
BP p.l.c. Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | £1.77B | 10.89 | 17.24% | 5.68% | -2.66% | 0.11% | |
77 Outperform | £163.26B | 15.13 | 8.25% | 3.84% | -9.21% | -2.61% | |
70 Outperform | £1.75B | 10.79 | 12.03% | 3.57% | 159.13% | 143.76% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
63 Neutral | £69.57B | 63.11 | 2.40% | 5.37% | -6.90% | -43.82% | |
63 Neutral | £3.79B | -10.03 | -11.32% | 7.44% | 123.03% | -330.89% | |
62 Neutral | £3.67B | -29.56 | -7.04% | 11.29% | 31.96% | -159.27% |
* Energy Sector Average
GB:BP
BP p.l.c.
458.55
98.32
27.29%
GB:HBR
Harbour Energy
231.40
-1.16
-0.50%
GB:SHEL
Shell (UK)
2,794.00
343.74
14.03%
GB:SEPL
SEPLAT Petroleum Development
261.50
60.59
30.16%
GB:ENOG
Energean
957.00
2.59
0.27%
GB:ITH
Ithaca Energy PLC
234.00
150.85
181.42%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.